# In the matter of Jai Laxmi Lighting Industries Pvt. Ltd. & Another CA Nos. 21-2019 & 10-2019 In CP (IB) No. 93-Chd-Hry-2018

> NCLT judgment dated 2019-02-21. Citation: TCN-2019-NCLT-04728. The case involves CA Nos. 21/2019 and 10/2019 in CP (IB) No. 93/Chd/Hry/2018, concerning the…

- **Court:** NCLT
- **Order date:** 21 Feb 2019
- **Citation:** TCN-2019-NCLT-04728
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jai-laxmi-lighting-industries-pvt-ltd-another-ca-nos-21-2019-10-2019-in-cp-ib-no-bd50fcce

## Summary

### Background

The case involves CA Nos. 21/2019 and 10/2019 in CP (IB) No. 93/Chd/Hry/2018, concerning the insolvency resolution of Jai Laxmi Lighting Industries Pvt. Ltd. M/s Paper Creations, an operational creditor, initiated the insolvency proceedings. Gyaninder Sadana, Director of the Suspended Board of Directors, filed CA No. 21/2019 seeking permission to submit a resolution plan under Section 240(A) of the Insolvency and Bankruptcy Code (IBC). Atul Kumar Kansal, the Resolution Professional, filed CA No. 10/2019 seeking a liquidation order against the corporate debtor. The Tribunal considered the applications and the submissions made by the parties.

## Facts

M/s Paper Creations initiated insolvency proceedings against Jai Laxmi Lighting Industries Pvt. Ltd. via CP (IB) No. 93/Chd/Hry/2018. The Tribunal admitted the case on 26.04.2018, declaring a moratorium and appointing Mr. Amit Matta as the Interim Resolution Professional (IRP), later replaced by Mr. Raj Kumar Gupta, and then Atul Kumar Kansal. Gyaninder Sadana, Director of the Suspended Board, filed CA No. 21/2019 seeking permission to submit a resolution plan under Section 240(A) of the IBC, claiming the corporate debtor was an MSME. The last date for Expression of Interest (EOI) submission was extended to 15.10.2018. Two parties, Sampanaya Infraventures Private Limited and Gyaninder Sadana, submitted EOIs. The COC advised the Resolution Professional to invite

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## Issues and analysis

### Issue 1: Whether Gyaninder Sadana is eligible to submit a resolution plan under Section 240(A) of the …

**Ratio:** The eligibility criteria for submitting a resolution plan include meeting the minimum net

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**Reasoning:** The Tribunal found that Gyaninder Sadana failed to meet the minimum net worth requirement

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**Interpretation:** Section 240(A) of the IBC provides an exception for MSMEs, allowing the

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**Application:** Gyaninder Sadana's application was rejected because he did not meet the

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Gyaninder…
- **Respondents:** Jai Laxmi…

## Timeline

- **2018-04-26 — Admission of CP(IB) No.…**: Tribunal admitted CP(IB) No. 93/Chd/Hry/2018, declaring moratorium and appointing Mr.…
- **2018-10-15 — Last Date for Submission of Expression of…**: The last date for submission of the Expression of Interest was extended up to 15.10.2018…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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